FCC rejects Starlink’s nearly $900 million application for broadband subsidies

Starlink cannot count on massive government subsidies to help expand its satellite internet service.The FCC has be rejected Bids for SpaceX units $885.5 million in aid Through the Rural Digital Opportunity Fund. According to a statement, the broadband provider “failed to demonstrate” that it could deliver the service it claimed.

FCC chair Jessica Rosenworcel says there’s ‘real hope’ for Starlink, but says her agency can’t justify a need $600 satellite dish. She added that the FCC needs to make the most of “scarce” funds to expand broadband.

SpaceX won the bid through an auction in December 2020. At the time, it said it would use the subsidies to serve 35 locations. It also promises to synchronize prices with terrestrial broadband and meet “regular” service expansion requirements.

LTD Broadband, a fixed wireless provider that netted more than $1.3 billion in that auction, also lost its bid today. The FCC said the company did not have a “reasonable ability” to deploy the required internet service after being disqualified in seven states.

We’ve asked SpaceX for comment. The denial isn’t a fatal blow to the company’s plans, but it makes clear that Starlink will have to rely on its own funds if it is to expand in 2020. The FCC’s move could also be a warning to other possible things — being a recipient of funds.Although the committee is eager to Improve rural broadbandit does not provide funds to internet providers without careful scrutiny.

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